PROJ6010 Project Management Application

Running head: PROJECT MANAGEMENT
PROJ 6010 Project Management Application: Construction
A Case Study of Regency Plaza Project
Name of the Student:
Name of the University:

PROJECT MANAGEMENT
1
Table of Contents
Introduction................................................................................................................................2
Part A: Project Contracts............................................................................................................2
Legal benefits and challenges of different contract types for the project..................................2
Stipulated or lump-sum contract................................................................................................2
Cost of work plus fee contract...................................................................................................3
Cost of work plus fee with guaranteed maximum price (GMP) contract..................................3
Construction management (CM) contract..................................................................................3
Design-build or design-and-construct (D&C) contract..............................................................4
Mitigation strategy for potential challenges related to the different contract types...................4
Recommendation of contract type for the Regency Plaza Project.............................................5
Part B: Project Pre-Planning......................................................................................................5
Analysis and mitigation of major challenges prior to beginning construction..........................5
Most effective approach to meet on-time delivery of the project..............................................6
Organizing the project costs and project cost breakdown..........................................................8
Project’s major deliverables and Work Breakdown Structure...................................................9
Part C: Controlling Communication........................................................................................12
Communications management plan.........................................................................................12
Analysis on the use of reports to address project stakeholder expectations............................13
Analysis on the level of detail necessary for regularly making stakeholder reports................14
Part D: Project Close-out.........................................................................................................14
Explanation on the role played by different elements in close-out of the project....................14
Analysis on the process of coordinating a lessons learned component...................................15
Conclusion................................................................................................................................15
References................................................................................................................................17
Appendix – Self Reflection......................................................................................................20

PROJECT MANAGEMENT
2
Introduction
This report is focused on a project for construction of Regency Plaza hotel complex
and it is the role of contractors as well as the team members to ensure successful completion
of the project. It has been found that the project was running behind schedule and over budget
due to inadequate budgeting or proper planning. In this report, the analysis is carried out on
various contract types to identify a suitable type that will be appropriate for the project. A
schedule along with the project costs has been reflected in this report to ensure successful
completion of the project. A communication plan has also been prepared to demonstrate how
communications will be managed during the project. Further, discussions has been presented
on the role being played by different elements in close-out phase of the project.
Part A: Project Contracts
Legal benefits and challenges of different contract types for the project
Stipulated or lump-sum contract
This type of contract shifts all the costs liability from client to the contractor. In this
type of contract, the contractor agrees to work according to specific schedule along with
usage of a management system for reporting or controlling quality. In this type of contract,
the risks that may generate from the client activities get reduced because of the fixed price
though this rate can vary based on the type of the industry. This contract is referred to as one
of the most easily understandable and accepted contract type. The changes in orders can also
be minimized in this contract (Halpin, Lucko & Senior, 2017). The major challenge in this
type of contract is that if the contractor bids too low for winning the contract, then strict
controls have to implemented to control the time and budget. If the contractor bids too high,
then there may be chance of not winning the contract.

PROJECT MANAGEMENT
3
Cost of work plus fee contract
The cost of work plus fee contract is referred to as one of the most conventional
contract type as it is much profitable and widely utilized in all type of industries. This type of
contract encourages the contactors to undertake certain project or jobs that may be risky for
them. It is suitable as there is guarantee that they will receive a set fee for the job also the
contractors do not have to be worried for controlling cost of the project. With the help of this
approach the contract manager will be able to deliver better quality project to the clients. This
contract type is not dependent upon materials and labors (Bajari, Houghton & Tadelis, 2014).
This type of contract is always settled at a reasonable and fixed prices to avoid issues of
bargaining at a later stage during construction. It saves the overall time and owner also gets
benefited by falling within the fixed material and labor time. For any type of incomplete
construction project this contract type is helpful.
Cost of work plus fee with guaranteed maximum price (GMP) contract
Though the Guarantee Maximum Price (GMP) contract an owner can obtain a
complete unspent contingency. The owners are allowed to take active participation in the
savings and that is not possible in case of the lump sum contract. The owners can
successfully maintain the quality of project with the help of this contract as they will become
capable of accessing the actual cost (Tran et al., 2018). For both the controversial as well as
fast tracking construction projects this contract type is always applicable. The owners become
capable of taking much better decision making power eve for the changed orders and relative
cost. The contact can be successfully controlled and manage. Moreover, it can be said that
this contract includes the cost of work and additionally guaranteed maximum price as per the
contract.